Overview

A summary of Umbra

Umbra’s AMM Models

Umbra's primary offerings are Constant Product Market Maker (CPMM) and Concentrated Liquidity Market Maker (CLMM) protocol. Umbra aims to the most efficient decentralized exchange (DEX) that enables users to trade utility and governance tokens directly on Eclipse. This eliminates the need for traditional order books, which can be inefficient and vulnerable to manipulation, such as spoof orders, especially for long-tail assets and higher-latency networks.

Umbra supports multiple liquidity pool designs to maximize capital efficiency and provide users with flexible liquidity options:

  • Constant Product MM (x * y = k) – Full-range liquidity pools that ensure continuous liquidity at all price points.

  • Concentrated Liquidity MM (CLMM) – Allows LPs to provide liquidity in specific price ranges, improving fee efficiency and trade execution.

These models work together to support diverse trading strategies while maintaining deep liquidity within the Eclipse ecosystem.

Umbra Mechanics

Umbra’s protocol facilitates token swaps and generates fees by attracting liquidity. The system rewards liquidity providers based on a ve(3,3) emissions model, ensuring incentives are distributed efficiently.

Epoch-Based Rewards

  • Each epoch lasts 7 days, beginning every Thursday at 00:00 UTC and ending on Wednesday at 23:59 UTC.

  • Liquidity providers (LPs) earn $UMBRA token rewards based on the votes their pools receive.

  • Only staked liquidity (via protocol fuel gauges) is eligible for emissions.

Governance and veUMBRA Voting

Participants can lock $UMBRA tokens to obtain veUMBRA, granting them governance rights to determine emissions distribution for the next epoch.

veUMBRA voters are rewarded proportionally to their locked amounts with:

  • 100% of the protocol’s trading fees from the previous epoch.

  • Additional voter incentives from the current epoch.

By leveraging ve(3,3) tokenomics, Umbra ensures that liquidity incentives are aligned with the needs of traders and liquidity providers, maximizing capital efficiency and sustainable growth.

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